What does the HO-8 policy cover?

The HO-8 policy, also known as the modified homeowners form, is specifically designed to provide coverage for older homes where the replacement costs may significantly exceed the current market value. This is particularly relevant for homes that are deemed historic or have unique characteristics that cannot be easily equated with modern construction costs.

The policy often covers the actual cash value (ACV) of the home rather than the replacement cost, which reflects the depreciation of older structures. This makes it essential for homeowners with properties that may have appreciated or lost value due to conditions of the market, yet require significant investment to rebuild or repair.

Unlike options that point to high-value luxury homes or new constructions, the HO-8 explicitly addresses the needs of those living in older homes, ensuring that they have appropriate coverage despite discrepancies in market valuations. Additionally, this policy is not designed for renters, as indicated by the renter's insurance option, which serves a completely different purpose focused on the belongings of individuals renting properties rather than the structure itself.